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More than half a million households in Victoria will see a drop in their power bills<\/a> under new default prices for electricity. The state\u2019s energy regulator has announced prices will fall<\/a> by an average of 5 per cent for households, or around $84 a year.<\/p>\n The Essential Services Commission (ESC) released its final default electricity prices today, which will apply from July 1. Small businesses<\/a> on the default offer will see an average drop of 6 per cent, or $241 a year.<\/p>\n The changes apply to about 512,000 households and 62,000 small businesses in the state who are on the default offer. That includes 182,000 embedded network customers, such as those who live in apartments, retirement villages and caravan parks, who can\u2019t choose their own electricity supplier.<\/p>\n RELATED<\/p>\n Prices will drop across each of the state\u2019s five electricity distribution zones, but they will vary by distributor. AusNet customers will see the biggest savings of $160 next year, while Citipower customers will see a $65 drop and Powercor a $70 drop.<\/p>\n The reductions are larger than forecast in the regulator\u2019s draft decision<\/a> released in March. Average residential bills will drop from $1,675 a year to $1,591 a year.<\/p>\n ESC chairperson and commissioner Gerard Brody said lower electricity prices would be \u201cwelcome news\u201d for Victorians who are continuing to face cost-of-living pressures<\/a>.<\/p>\n \u201cVictoria\u2019s default electricity prices are set independently of energy retailers, which ensures all Victorian households and small businesses have access to a fair deal,\u201d he said.<\/p>\n \u201cYou can find a better deal by shopping around, but the default offer provides a simple, fair option to all households and small businesses.\u201d<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n The majority of Victorians are on cheaper market offers rather than the default offer, which covers around 17 per cent of households and 21 per cent of small businesses.<\/p>\n However, the offer also acts as a benchmark price across the wider market.<\/p>\n Energy Minister Lily D\u2019Ambrosio said the government had invested in renewable energy to make \u201clife cheaper\u201d for Victorians.<\/p>\n The state\u2019s default price is also expected to remain lower than the benchmark used in other eastern states.<\/p>\n Cheaper electricity expected for other Aussie states <\/p>\n The Australian Energy Regulator, which sets default market offers for NSW, south-east Queensland and South Australia, released its draft determination in March.<\/p>\n It proposed that prices would fall by between 1.3 and 10.1 per cent, depending on where a person lives, while small business prices would drop by between 7.6 and 21.2 per cent.<\/p>\n For NSW households, prices could drop by $58 to $226, while South East Queensland customers could see a fall of $216 and South Australia a saving of $31.<\/p>\n It said the savings were driven largely by lower wholesale electricity costs and reduced environmental and retail operating costs.<\/p>\n A final decision on its default offer will be published on Tuesday and will then come into effect on July 1.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n